After deteriorating yesterday, bonds started better this morning but have now turned negative as the August Institute of Supply Management (ISM) Manufacturing Index came in better than expected with a reading of 50.6 vs expectations for a 48.5 reading. Separately, Initial Jobless Claims for the week ended 8/27/11 came in at 409,000 which was slightly higher than the 407,000 expected and 2nd Qtr Productivity and Labor Costs were revised with Productivity dropping by.7% and Unit Labor Costs increasing by 3.3% vs expectations for 2.4% increase.